Data washing

In this article, we explore the concept of data washing and data validation. What does data washing entail and how can your business benefit from this practice on a daily basis?

Definition of data washing

Data cleansing is the process of identifying, correcting and removing erroneous data in a dataset, resulting in a cleaner and more accurate database.

While all data can be washed in principle, the process often requires reference data to ensure accuracy. Examples of this include addresses that can be verified against DAWA (Danish Addresses Web API), CPR numbers against the CPR register, or company information against the CVR register.

In Denmark, it is common to perform data washing on addresses, CPR numbers and CVR numbers.

The importance of data washing

There are many reasons to perform data washing, but the main one is to ensure that your systems always contain up-to-date and correctly spelled data. Incorrect information in your CRM, ERP or financial system can have serious consequences, especially if the information is entered incorrectly from the start.

For example, incorrect customer information can lead to your business sending goods or invoices to the wrong addresses, or customers being untraceable if the original address was incorrect.

Correct customer information in debt collection cases

Correct customer information is crucial, especially when it comes to debt collection cases. If a customer doesn't pay an invoice, it's important to have the right information to be able to trace them via the CPR or CVR register, even if they have moved.

Lawyers and debt collection companies use the CPR register daily to find people and companies that have moved. Without a correct address or full name, it can be impossible to find a person, which often leads to debt collection cases being abandoned.

This problem could be avoided with regular data washing, ensuring that all information is up-to-date and accurate.

When should you wash your data?

Data washing should be performed as often as possible or at a frequency that suits your business needs. If you have many customers who change addresses frequently, or if it is critical to have correct addresses for sending out invoices and products, you should wash data regularly.

Many companies choose to perform data washing at customer creation, but this is not sufficient. Individuals and businesses often change their name or address, so it's important to keep this information up to date regularly.

More companies are adopting fixed intervals for data washing: daily, weekly, monthly or annually. The appropriate frequency depends on the needs of the business, but more frequent data washing reduces the risk of erroneous information in customer data.

Professional help with data washing with Qatchr

At Qatchr (our own credit platform) we offer professional help with data washing so that your customer information is always correct. We help you update names, addresses, credit and accounting information. This gives you a clear picture of your customers, whether they are private or business customers.

When your customer database is up to date, you can better assess the creditworthiness of your customers. By running regular credit checks, your business can maintain a sound credit policy that protects your company's finances.

Summing up

• What is data washing?
  • Process that corrects and removes erroneous data.
  • Often requires reference data for accuracy.
  • Examples: DAWA for addresses, CPR register for CPR numbers, CVR register for company information.
• Why wash data?
  • Ensures up-to-date and correctly spelled data.
  • Avoid errors in CRM, ERPor financial systems.
  • Prevents incorrect shipments and customer loss.
• Significance in debt collection cases
  • Correct information makes it possible to track debtors.
  • Prevents the loss of debt collection cases.
• Frequency of data washing
  • Depends on customer base and needs.
  • More frequent washing reduces the risk of failure.
  • Fixed interval: daily, weekly, monthly or yearly.